KPMG’s Nature Positive Challenge finalists reveal four distinct business model patterns emerging in Australian climate tech, from AI-enabled ocean restoration to circular textile recycling infrastructure.
What’s happening: Five finalists at KPMG’s Nature Positive Challenge demonstrate distinct business model patterns emerging in Australian climate tech.
Why this matters: The KPMG finalists represent commercial patterns that are achieving traction, including AI-physical infrastructure hybrids, circular economy industrial applications, and Indigenous knowledge commercialisation frameworks that address the sector’s persistent scaling challenges.
Brisbane climate tech company Blue Carbon claimed both major prizes at KPMG’s Nature Positive Challenge, but the five finalists reveal more than individual winners. They demonstrate four distinct business model patterns emerging in Australian climate tech as the sector moves from green premiums toward measurable returns.
Blue Carbon uses wave energy to circulate, cool and oxygenate seawater, combining real-time ocean intelligence with autonomous systems to regenerate marine habitats. The company secured the $100,000 KPMG Nature Positive Prize and $20,000 People’s Choice Award from 75 applicants across Australia, Fiji and Papua New Guinea.
Dr Ana Novak, CEO of Blue Carbon, said the recognition will help scale passive, ocean-powered systems that support healthier marine ecosystems whilst reducing energy demand across ocean industries.
“Winning the KPMG Nature Positive Prize is a catalyst for Blue Carbon,” said Dr Novak. “It will help us scale passive, ocean-powered systems that support healthier marine ecosystems while reducing energy demand across ocean industries.”
Physical meets digital
The finalists demonstrate a pattern where physical infrastructure combines with AI and digital systems, addressing what the 2025 Australian Climate Tech Industry Report identifies as a critical gap in local investment.
According to PwC analysis, Australian investment in AI-related climate tech dropped from $700 million in 2022 to $100 million in the first three quarters of 2024, with limited diversification mostly focused on industrial applications.
BlockTexx, a Queensland cleantech company, recycles textiles and clothing using technology that transforms waste into raw materials. The company operates in a sector where Australia generates over 300,000 tonnes of textile waste annually, yet only 7 per cent was recycled in 2018 to 2019, according to the 2020 National Waste Report.
Syenta develops ultra-fine wiring for computer chips, creating interconnects that are smaller and denser, allowing faster and more efficient data movement for next generation computing. The technology addresses data centre energy demands, a sector that attracted significant investor attention in 2025 as AI infrastructure expanded.
Circular gets industrial
Fellow finalist Newera Bio develops high-performance, bio-based dyes and binders to replace toxic and fossil fuel based alternatives used in textiles and beauty industries. The company addresses a market where Australia’s textile and clothing industry contributes $27.2 billion to the economy and employs over 489,000 people, according to Australian Fashion Council modelling.
The circular economy pattern extends beyond consumer-facing products into industrial applications. Climate tech companies now employ over 7,000 people in Australia, with 51 per cent focused on emissions reduction or removal, according to the 2025 Australian Climate Tech Industry Report released by Climate Salad.
However, the report identifies persistent challenges. Eighteen per cent of climate tech founders reported no impact metrics at all, which Climate Salad describes as a missed opportunity for credibility, funding and alignment with emerging climate reporting standards.
Pre-seed funding rounds continue dominating as new climate tech ventures enter the ecosystem, reflecting strong ideation but limited progression to later stages. Over $164 billion in estimated public funds sits available for climate-aligned initiatives, yet only $10 billion has been deployed recently.
Indigenous knowledge scales
Native Secrets Australia won the First Nations Award category at the KPMG challenge. The Dubbo-based company produces skincare and wellness products using native botanicals derived from cultural harvesting cycles that protect land and support ecosystem regeneration.
The company represents a business model pattern where Indigenous knowledge combines with commercial frameworks. Impact startups comprised 41.5% of all early-stage investment in Australia in 2024, up from 38.9 per cent in 2022, according to the Impact Startups Benchmark Report 2025.
Climate-focused startups emerged as the dominant force within this category, receiving $1 billion in 2024, more than double the investment in health ventures and five times that of people-related ventures.
The judging panel included representatives from the Black Excellence Fund, WWF-Australia, Environmental Leadership Australia and KPMG’s global private enterprise ESG team. Andrew Yates, CEO of KPMG Australia, said the panel was impressed with how Blue Carbon tackles critical ocean ecosystem challenges through novel technology and artificial intelligence integration.
“Blue Carbon stood out for its novel technology and integration of artificial intelligence to accelerate the monitoring and regeneration of natural systems, moving us closer to a resilient, nature-positive economy,” said Mr Yates.
Past winners demonstrate commercial outcomes following participation. Uluu, a plastic alternatives biotech company and 2023 winner, announced a $16 million Series A funding round in October 2025. Levur, the 2024 winner developing synthetic palm oil alternatives, raised $1.2 million in May 2025.
The five finalists will receive ongoing access to KPMG’s advisory services, including guidance on scaling operations, accessing investment networks and connecting with industry partners. The challenge provided a $250,000 pool of tailored advisory services alongside monetary prizes.
For Australian climate tech startups, the patterns emerging from KPMG’s finalists suggest commercial traction requires combining physical infrastructure with digital intelligence, targeting industrial applications over consumer markets, and demonstrating measurable environmental outcomes alongside financial returns.
Malcolm Thornton, head of growth capital at the Clean Energy Finance Corporation, describes the momentum as highly encouraging amid a focus on achieving Australia’s net zero targets.
“The transition to a net zero economy is creating exciting opportunities for new technologies and business models, demanding rapid innovation and the acceleration of commercialisation,” said Mr Thornton. “There’s a real need for specialist risk capital to scale up these enterprises as they drive emissions reduction.”
Source: KPMG
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